November 13, 2024
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Niva Bupa IPO Listing pr
ice estimate intends to prove Listing price-range and also long term potential of this scrip
Niva Bupa’s Rs. 2200 crore IPO has received not so hot response from different categories of the investors. The QIB portion is subscribed 2.17x which not quite impressive. Whereas HNI portion is subscribed 0.71x and retail portion is subscribed 2.88x. So, we can expect selling pressure from HNI investors at the opening bell.
The oversubscription is 1.90x for the IPO which closed on 11th November 2024.
Niva Bupa Health Insurance aims to achieve this purpose through its health insurance products and services that enable customers to navigate their healthcare journey, by providing them access to a holistic health ecosystem. According to the Redseer Report, it is one of India’s largest and fastest growing SAHI based on overall health GDPI of ₹54,944.28 million in Fiscal 2024.
From Fiscal 2022 to Fiscal 2024, its overall GWP grew at a CAGR of 41.27% and its GWP from retail health grew at a CAGR of 33.41%. Its growth in overall health GDPI from Fiscal 2022 to Fiscal 2024 of 41.37% is one of the highest growths among SAHIs, and is almost double of the industry’s average, which according to the Redseer Report, increased by 21.42% from Fiscal 2022 to Fiscal 2024.
As per the Redseer Report, it had a market share in the Indian SAHI market of 16.24%, 15.58% and 13.87% for Fiscals 2024, 2023, and 2022 respectively based on retail health GDPI.
Not so strong fancy is witnessed for this IPO in the grey market since last 3 sessions. In spite of strong business, the insurance stocks and more particularly health insurance stocks donot enjoy much fancy in the market. The secondary market is passing through heavy selling pressure of FIIs, now a days.
Now, the scrip will be listed on NSE & BSE on 14th November 2024. We expect the listing to be in the range of Rs. 70-72 for the shares issued at Rs. 74. However if you retain these shares for the long term, it has strong potential and may provide good returns in the next 9 to 12 months.
